Leadership Style
Mr. Surendra Soni has recently joined as the Managing Director of an automobile company, which at present is incurring heavy losses. He has been entrusted with the formidable task of rejuvenating the company. He faces many challenges to achieve this task, such as controlling costs, improving quality, increasing the productivity and boosting the morale of the employees.
Mr. Soni, in his previous company—also an automobile company, as the Deputy Managing Director, had proved to be a proficient manager and an effective leader who had successfully inspired his employees to increase the productivity. He was commended for his maximum concern for both people and production and also for bringing about integration between the needs of the employees and of the company.
In the present assignment also, Mr. Soni has pursued the policy of participative management and has shown high concern for both production and people. With a view to reviving the company back to health, he effected some major changes. First of all, he decentralised the organisation so that the subordinates could exercise their discretion and initiative in decision-making and their imagination and creativity in performing their other functions. Furthermore, he empowered the junior managers to sanction expenditure upto a specified limit without seeking prior approval of the higher level. Communication system was also improved to facilitate free flow of upward and downward communication.
Mr. Soni has also adopted several measures to cut costs and wasteful expenditure. He has banned donations to charitable institutions but increased the amount being spent on the welfare activities meant for the employees.
Will Mr. Soni's leadership style prove effective in ensuring bright future of the company? Some executives are of the view that lots of things are being done but they might not be effective in the long-run. Others disagreed with them and said, 'Okay, we should give it a try'.
Questions
(i) Analyze the above case in the light of your acquaintance with the models of
Organizational Behaviour?
(ii) Comment upon the steps taken by Mr. Soni to modify the behaviour of people in the company.
